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Virgin Healthcare-Richard Branson Buys into Assura, NHS Surgeries
Tycoon Richard Branson has bought a 75% share in the UK's largest owner of NHS medical practices.
Shares in the company, the Assura Group, immediately fell in value by an eighth. The deal appears to have been put together by Sir Richard's daughter Dr. Holly Branson and will result in a new business called Virgin Healthcare.
Asura reported pre-tax loss of £4.4 million to September last year. Branson clearly sees a potential growth market here in the UK for the type of high street walk-in free at point of contact privately run NHS facility. If he can make it work he could be set up for the roll out of Barrack Obama's US health care plans which could see at least some free health care for millions of Americans.
Branson is rich enough to ride the initial losses that setting up such new models both in the UK and abroad might initially incur. Assura already have 30 General Practitioner Surgeries set up serving more than 3 million patients and employing 1,500 GPs (MDs).
“For us, this is the culmination of what has probably been five years of knowing we wanted to be in this space but really not finding the right entry point,” said Gordon McCallum, chief executive of Virgin Management.
Shares in Assura tumbled 6½p to 45p, a decline of 12.62 per cent, once the terms of the deal became known. Virgin is paying £4 million to Assura, which will loan the money back to the business in exchange for the remaining 24.9 per cent stake in it. Assura plans to concentrate on its more profitable pharmacy and property businesses.
Virgin Group is today pleased to announce that it has realised a long-held ambition to enter the healthcare sector with the acquisition of a 75.1% share-holding in Assura Medical, a provider of primary healthcare services. Assura will retain a significant minority shareholding in this new partnership. Richard Burrell, Chief Executive of Assura, will join the Board of Virgin Healthcare alongside Patrick McCall and Gaurav Batra from Virgin Group.
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Most RecentMost Recommended Comments (8)
at 09:27 on March 4th, 2010
Free health care? Dream on.
at 10:12 on March 4th, 2010
In the UK we have 'free at point of access' NHS health care but of course it's paid for out of our National Insurance contributions - the more you earn (up to a certain limit) then the more you pay in. It's generally good. It would, I should imagine, be a huge shift for the US to adopt such a scheme.
at 10:35 on March 4th, 2010
That would demand a rational debate and the exercise of sound judgment. It would also require the US look beyond its shores to learn from other countries. As He said, I don't think there is any danger of that happening in the short term. Too busy buying guns, organizing tea parties and campaigning against gay marraige to actually made sound governance a priority
at 11:15 on March 4th, 2010
Thanks for visiting, RNG!
If the government is giving it away, contrary to the belief of some mindless liberals and those that still believe in the tooth fairy, it isn't free.
at 12:28 on March 4th, 2010
Well riddle me this Republicans. Why does your health system cost so more of your GDP than other countries with worse outcomes. The rest is just faith based reasoning. Govt bad, markets good. Not so much, John boy
at 12:38 on March 4th, 2010
Here we see Branson as a 'man on the make' - although he's generally well liked too - have a distrust of private companies buying up public service franchises even when sometimes they deliver a better service - it still costs folks nothing at point of service - no one asks to see any insurance papers etc at the emergency room - but we don't like to think someone is making a profit out of public services - most feel that all the money should be fed into making services better with no private profiteering... so Virgin Healthcare rings alarm bells ... fasten seat-belts and get ready for take-off...
at 12:11 on March 9th, 2010
I welcome the timely and exciting move by Virgin into primary care and I look forward to supporting this in my primary care discussions.
at 15:25 on April 14th, 2010
So many people knock Richard Branson, but considering he's at the helm of some massive companies, that have bought better quality, service & prices to millions, he still pays himself a fraction of what some other company or bank directors receive, and they're only interested in themselves.Richard Branson's stated that the profits from Virgin Trains and Virgin Air will go towards developing, cheaper and more environmentally friendly fuel, the estimated over the 10 year window he's stated are estimated to be about $3Bn, so no private profiteering there.I think what we will see from Virgin Health is something that will open the eyes of the Government Health watchdog as to how much money is being wasted in the NHS, there's far too many chiefs, and far too few Indians, that's not meant as a racist slur, just another way of saying too many top brass pen pushers, and not enough people on the shop-floor doing the work where they're needed.Even when Virgin wanted to run the Lottery in place of Camelot, somehow it was stopped because the majority of the income was going to be re-paid to good causes, that means less TAX for the Government.Even when he wanted to take over Northern Rock bank, various politicians blocked it, because it would be less money for the treasury from a bank run properly.If there's one Business Man I would trust to do something to improve the lives of others, Sir Richard Branson would be my first choice every time